Contractor Warranty Policy: Template & Guide
House Escort Team
Most contractors either have no written warranty policy — leaving them exposed to unlimited callback demands — or they have a warranty policy so buried in fine print that it creates more disputes than it prevents.
A clear, written warranty policy does three things: it wins you more jobs, it sets honest expectations with customers, and it gives you a defensible position when a warranty dispute arises. This guide walks you through how to build one from scratch.
Why a Written Warranty Policy Matters
Verbal warranties are unenforceable nightmares. Without something in writing, every customer conversation about a warranty becomes a memory contest — and you will lose.
Beyond disputes, there’s a sales argument: a clearly stated written warranty signals professionalism. When a homeowner is comparing two bids from contractors they’ve never used before, the one with a formal warranty policy builds more confidence. It says you stand behind your work.
The Magnuson-Moss Warranty Act (primarily for consumer products) sets a legal baseline for written warranties in commerce. While it mostly applies to manufactured goods, its principles inform what courts expect from service warranties as well. Review the basics at FTC.gov.
Workmanship Warranty vs. Materials Warranty
These are two distinct things, and conflating them is the source of most warranty disputes.
Workmanship warranty: Your guarantee that the labor you performed was done correctly. If the roof you installed leaks because a shingle was improperly nailed, that’s a workmanship issue — your responsibility.
Materials warranty: The guarantee from the manufacturer of the products you installed. If a shingle fails due to a manufacturing defect, that’s covered by the manufacturer’s warranty, not yours.
Your warranty policy should clearly state both — what you cover, what the manufacturer covers, and how the customer makes a claim for each.
Typical Warranty Durations by Trade
There’s no universal standard, but these ranges represent common industry practice:
| Trade | Workmanship Warranty |
|---|---|
| Roofing | 1–5 years (2 years is common) |
| HVAC installation | 1–2 years on labor |
| Plumbing | 1 year on labor |
| Electrical | 1 year on labor |
| General contracting / remodeling | 1–2 years on workmanship |
| Painting (exterior) | 1–3 years depending on prep |
| Foundation repair | 5–25 years (varies by method, often transferable) |
| Window installation | 1–2 years labor; manufacturer varies |
Manufacturer product warranties are separate and can range from 5 years to lifetime depending on the product. Always register products on behalf of the customer (or give them registration instructions) so they can make direct manufacturer claims.
What to Include in Your Warranty Policy
A complete warranty policy should address:
1. Scope of Coverage
State exactly what’s covered. “All workmanship related to the scope of work described in this contract” is better than “all work.” Reference the attached scope of work by document number or date.
2. Duration
State the start date (typically substantial completion or final payment date) and the duration for each coverage category. Don’t use vague language like “for a reasonable period.”
3. Exclusions
Be specific. Common exclusions that protect contractors:
- Normal wear and tear: Fading paint, minor surface weathering, etc.
- Homeowner abuse or neglect: Using wrong cleaning products on a sealed surface, ignoring recommended maintenance
- Acts of God: Hail damage, flood, tree impact
- Modifications by others: If a third party modified your work, your warranty on that portion is void
- Pre-existing conditions: Structural or mechanical issues not part of your scope
Without explicit exclusions, courts may interpret your warranty broadly.
4. Claim Procedure
How does the customer make a warranty claim? Your policy should state:
- How to contact you (phone, email)
- Timeframe for your initial response (e.g., within 2 business days)
- How you’ll evaluate the claim (site visit, photos)
- Who pays for travel/diagnostic time if the claim is not covered
5. Remedy
What will you do if a warranty claim is valid? Options: repair the defect, replace the component, or refund a portion of the labor charge. Define which remedies apply.
6. Limitations
Consider including a limit on your total warranty liability — typically limited to the original contract value. This prevents open-ended exposure on large projects.
Sample Warranty Policy Language
Here is a template you can adapt. Review it with your attorney before using it:
[Your Company Name] — Limited Workmanship Warranty
Coverage: [Company Name] warrants that all labor performed under Contract #[___], dated [date], shall be free from defects in workmanship for a period of [X year(s)] from the date of substantial completion.
Materials: Materials and equipment are covered by the respective manufacturer’s warranty. [Company Name] will assist the customer in submitting valid manufacturer warranty claims but bears no responsibility for manufacturer defects.
Exclusions: This warranty does not cover: (a) damage resulting from normal wear and tear; (b) damage from homeowner neglect, abuse, or improper maintenance; (c) damage caused by Acts of God including but not limited to hail, wind, flood, or fire; (d) damage caused by modifications made by parties other than [Company Name]; (e) pre-existing conditions not identified in the scope of work.
Claim Procedure: Warranty claims must be submitted in writing to [contact email] within the warranty period. [Company Name] will respond within 2 business days to schedule an inspection. Claims determined to be outside the warranty scope may be subject to a diagnostic fee of $[___].
Remedy: Upon verification of a valid warranty claim, [Company Name] will, at its sole discretion, repair the defective workmanship or provide a labor credit not to exceed the original labor cost for the affected scope.
Limitation of Liability: [Company Name]‘s total liability under this warranty shall not exceed the original contract amount.
Should You Offer Warranties to Win Jobs?
Yes — with guardrails. Offering a written warranty is a competitive differentiator, especially in trades like roofing, HVAC, and remodeling where warranty concerns are top of mind for homeowners. Contractors who offer a formal written warranty close at higher rates and face fewer post-job disputes.
That said, don’t over-promise. A five-year workmanship warranty on an exterior paint job in Texas (intense UV exposure, humidity, thermal cycling) is a liability unless you’re doing premium prep work. Match your warranty terms to what you can actually deliver.
For guidance on what to include in the underlying service contract — which the warranty attaches to — see /resources/how-to-write-service-contract-home-repairs/.
Documenting Warranty Claims
When a customer submits a claim, document everything:
- Date and nature of the claim (in writing — reply to their email or text so there’s a thread)
- Site visit notes and photos before any repair work begins
- Your determination — is this a valid warranty issue or an exclusion?
- Work performed to resolve a valid claim — scope, materials, date
Good documentation protects you from customers who return months after a warranty claim is “resolved” and try to reopen it. It also protects you from claims that are really manufacturer defects being pushed onto your workmanship warranty.
Protect Yourself with a Liability Waiver Too
For work involving hazardous conditions, pre-existing damage, or customer-requested deviations from code, pair your warranty policy with a liability waiver. See /resources/contractor-liability-waiver-template/ for a template framework.
Build a Professional Profile on House Escort
Contractors who display professional policies — warranties, service agreements, response commitments — convert more leads on House Escort. Your profile is your storefront. Make it look like you run a real business.
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Frequently Asked Questions
Does a contractor have to offer a warranty in Texas? Texas does not require contractors to offer an express warranty on workmanship, except for new home construction (which is governed by the Texas Residential Construction Liability Act). For remodeling and repair work, warranties are voluntary but strongly recommended for dispute protection.
What’s the difference between a workmanship warranty and a manufacturer’s warranty? A workmanship warranty covers the quality of your labor. A manufacturer’s warranty covers defects in the products or materials you installed. A roofing contractor might offer a 2-year workmanship warranty while the shingle manufacturer offers a 30-year product warranty — these are separate obligations.
How do I handle a warranty claim I think is not covered? Respond in writing, conduct a site inspection, document your findings with photos, and provide a written explanation of why the claim falls outside your warranty terms. If you determine it’s an exclusion (homeowner damage, normal wear, etc.), communicate that clearly with documentation. Never just ignore a warranty claim — that creates more exposure than responding.
Should I charge a diagnostic fee for warranty evaluations? Many contractors include a small diagnostic fee for warranty evaluation if the claim turns out to be outside warranty scope. This discourages frivolous claims and covers your time. Disclose this fee in your warranty policy so customers are not surprised.
Can I offer a transferable warranty? Yes — some contractors (especially foundation repair companies) offer transferable warranties that follow the home, not the owner. Transferable warranties are a strong marketing differentiator if you do larger capital improvements. Just make sure your policy language specifies how the transfer is documented and any limitations.